initial public offerings (IPOs) trading on American exchanges

Friday, August 1, 2014

Mobileye (MBLY) began trading on the NYSE on 1 August 2014

Chairman & CTO, Amnon Shashua, President & CEO, Ziv Aviram and other members of Mobileye’s leadership team ring the Opening Bell at The New York Stock Exchange on August 1, 2014 in New York City

Here are four things to know about the company:
Financials: The company has a long record of losing money. Revenue in 2013 doubled to $81.2 million, from $40.3 million. While Mobileye posted a $19.9 million profit for 2013, it posted a $19.6 million loss for the first quarter of 2014. In its prospectus, it noted there is no assurance that it will become and remain profitable.
Indeed, it forecasts a bottom line for the second quarter of between a loss of $0.1 million and a profit of $0.6 million, compared with a profit of $4.0 million for the quarter ended June 30, 2013.
In addition, it flagged a “material weakness in our internal control over financial reporting, which resulted in the restatement of our 2013 earnings per share.”
Customers: General Motors Corp. is its biggest client, accounting for 29% of revenue from original equipment manufacturing. Honda accounts for 25% of OEM revenue, followed by BMW at 15%, it said. OEM revenue totaled $63.3 million in 2013, or 78% of total revenue.
Who cashed out through the IPO: Most of the shares sold came from existing investors. The biggest is a unit of Goldman Sachs Group Inc., which sold 4.4 million shares, reducing its stake to 12.3% from 14.9%. Other sellers included Amnon Shashua and Ziv Aviram, the company’s founders and senior executives.
Political risk: Mobileye noted this in its prospectus:
“We could be harmed by any major hostilities involving Israel, the interruption or curtailment of trade between Israel and its trading partners or a significant downturn in the economic or financial condition of Israel.
“Some of our employees in Israel are obligated to perform annual reserve duty in the Israeli military and are subject to being called for additional active duty under emergency circumstances.”

No comments:

Post a Comment